GST Rate on Polypropylene Non-Woven Fabric Carry Bags Ruled at 5%
The Kerala AAR ruled that non-woven fabric carry bags costing under Rs 1,000 attract 5% GST as textile articles.
- Ruling
- ORDER No. CT/5492/18-C3 DATED 29/05/2018
- Dated
- 29 May 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- JJ Fabrics asked about GST classification for polypropylene non-woven carry bags.
- The carry bags are sold for under Rs 1,000 per piece.
- The authority classified them as textile bags under HSN code 6305 33 00.
- The ruling established an applicable GST rate of 5% for these bags.
In short
A manufacturer produced carry bags from polypropylene non-woven fabric and supplied them to retail outlets and textile shops. The company asked tax authorities whether these bags should be taxed as plastic items or as textile goods under GST.
What has changed
How it worked before
Businesses were uncertain whether non-woven polypropylene bags should be taxed at higher rates as plastic goods or at lower rates as textile articles.
What has changed
The Kerala Authority for Advance Ruling decided in order CT/5492/18-C3 that non-woven polypropylene carry bags are textile articles under HSN code 6305 33 00. Because the sale price is under Rs 1,000 per piece, they fall under Entry 224 of Schedule 1 and attract 5% GST.
Who this affects
Manufacturers and sellers of non-woven polypropylene carry bags supplied to retail and textile businesses.
An example
Apex Packaging in Kerala manufactures non-woven polypropylene bags and sells them to local retail shops for Rs 20 per piece. Apex wants to charge 5% GST on its invoices based on order CT/5492/18-C3. While this ruling suggests their product qualifies as a textile bag taxable at 5%, Apex cannot legally rely on another company's ruling. Apex must verify with their own tax office or apply for an advance ruling of their own.
What you should do
If you manufacture or sell these bags, do not automatically lower your tax rate based on this ruling. An advance ruling only binds the business that applied for it and their local tax officer. Consult a professional tax advisor or apply for your own advance ruling before changing your GST filings.
If you do nothing
If you collect 5% GST assuming this ruling covers your business, a tax officer can dispute the classification during an audit. If they treat your product as a plastic item instead, you may have to pay the tax difference out of pocket. You could also face interest charges and financial penalties for underpaying GST.
The terms explained
- HSN Code
- An international standardized system of numerical codes used to classify traded goods for tax calculation.
- Advance Ruling
- A formal clarification provided by tax authorities to a specific business regarding tax laws and rates.
- Non-woven fabric
- A fabric-like material made from fibers bonded together mechanically, thermally, or chemically without weaving or knitting.
The ruling in detail
Authority for Advance Ruling
M/s. JJ Fabrics
ORDER No. CT/5492/18-C3 DATED 29/05/2018 · Keralam
Questions before the authority
- Classification and rate of tax on carry bags which are made of non-woven fabrics.
Facts
The applicant is a manufacturer of carry bags made of polypropylene non-woven fabrics using polypropylene granules, color master batches, and calcium carbonate filler. These bags are supplied to industrial units, retail outlets, and textile shops for packing commodities. The sale value of each carry bag is less than Rs. 1,000 per piece.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification and tax rate for polypropylene non-woven carry bags | Entry 224 of Schedule 1, taxable @ 5% GST (2.5% CGST + 2.5% SGST) Applicable provided the sale value does not exceed Rs. 1,000/- per piece |
The Authority ruled that carry bags made of polypropylene non-woven fabrics are classified under **Entry 224 of Schedule 1** of Notification No. 01/2017-Central Tax (Rate). Consequently, they are taxable at the rate of **5% GST** (2.5% CGST + 2.5% SGST).
Reasoning
The product is covered under Chapter 63 of the Customs Tariff Act, specifically HSN 6305 33 00, which pertains to sacks and bags of man-made textile materials used for packing goods. Test reports confirmed that the applicant's product is a polypropylene non-woven fabric item. Entry No. 224 of Schedule I of Notification No. 01/2017-Central Tax (Rate) covers other made-up textile articles of sale value not exceeding Rs. 1,000 per piece. As the applicant's sale price per piece is under Rs. 1,000, it attracts 5% tax.
Provisions relied on
- Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017
- State Notification 360/2017 dated 30.06.2017
- HSN Code 6305 33 00
- Section 98 of the Goods and Services Tax Act, 2017
For the practitioner
This ruling establishes that non-woven polypropylene carry bags are classified as **textile articles under Chapter 63** rather than articles of plastics. It allows manufacturers and sellers to apply a lower **5% GST rate** if the per-unit value is under Rs. 1,000.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/kerala-ct_5492-18-c3-jjf.pdf
Legibility of the scan, as read: high.
Prepared 18-10-2026.
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